Last week, the Division of Medicaid filed new State Plan Amendments which lower inpatient hospital payments by 96.2% and offset the $369 million loss from claims by a corresponding increase in the upper payment limit (UPL). But reducing a hospital’s individual claims payments by 96.2% does not guarantee that the individual hospital’s UPL will increase correspondingly.
In the spreadsheet attached below, we have compared the Governor’s latest plan against the House leadership plan supported by MHA during the last week of the Special Session. Note that Medicaid increased the available UPL (not including the “shifted” amount) by $60 million, over and above the UPL amount they had helped MHA formulate during the regular legislative session. We don’t know if Mississippi hospitals actually qualify for that increase, but in order to make a valid comparison, we enhanced our model by the same amount.
Also, in the Medicaid model, they did not include the bed taxes that were included in the House leadership’s version of the proposed Medicaid funding bill, so we revised their net amount by the amount of the bed tax paid by each individual hospital. The House bill also included $45 million in tobacco taxes.
As you can see, under the House bill, 87 hospitals fare better than they will under the latest Medicaid plan.